On Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2025

ZURICH--( BUSINESS WIRE)--On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the “Company,” “we,” “our,” “ours,” or “us”), has announced its financial results for the third quarter and nine-month period ended September 30, 2025.

Caspar Coppetti, Co-Founder and Executive Co-Chairman of On, said: "This quarter was another one for the record books - a true showcase of our premium strategy in action. It reflects the best of what On stands for: innovation, purpose, and performance coming together to inspire movement. Our focus on excellence continues to drive powerful global momentum, earning deep trust with consumers and strengthening the core of our business. With an outstanding product pipeline and boosted by the remarkable achievements of On's athletes that embody our performance spirit, we carry this momentum forward with confidence and energy."

Martin Hoffmann, CEO and CFO of On, said: "Our consistent execution continues to bring our strategy to life - winning in performance, elevating our brand, and engaging our expanding global community in credible and consistent ways. We’re strengthening our connection with customers through experiences that showcase our premium positioning - from our most elevated stores to the growing momentum of our apparel business. At the core, our focus on operational excellence and technology is making us faster, smarter, and more agile. These results give us strong confidence - both for a successful holiday season and for the long term, as we continue building the world’s most premium global sportswear brand."

Key Financial and Operating Metrics

Key financial and operating metrics for the three-month period ended September 30, 2025 compared to the three-month period ended September 30, 2024 include:

Key financial and operating metrics for the nine-month period ended September 30, 2025 compared to the nine-month period ended September 30, 2024 include:

Key financial and operating metrics as of September 30, 2025 compared to December 31, 2024 include:

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis are non-IFRS measures used by us to evaluate our performance. Furthermore, we believe these non-IFRS measures enhance investors' understanding of our financial and operating performance from period to period because they enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS. For a detailed description and a reconciliation to the nearest IFRS measure, see section titled “Non-IFRS Measures.”

Outlook

Building on a year defined by strategic focus and outstanding execution, On looks ahead with strong confidence. Brand momentum remains exceptionally high, fueled in recent weeks by remarkable athlete achievements, cultural moments elevating On globally, and the launch of its inspiring holiday campaign. Reflecting the strength of its third-quarter performance and sustained momentum, On is raising its full-year 2025 guidance across all key metrics.

Other than with respect to IFRS net sales and gross profit margin, On only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. As a result, we are not able to forecast with reasonable certainty all deductions needed in order to provide a reconciliation to net income. The above outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of risks and uncertainties, including those stated below and in our filings with the U.S. Securities and Exchange Commission (the "SEC").

Conference Call Information

A conference call to discuss third quarter results is scheduled for November 12, 2025 at 8 a.m. U.S. Eastern time (2 p.m. Central European Time). Those interested in participating in the call are invited to dial the following numbers:

United States: +1 646 307 19 63

United Kingdom: +44 203 481 42 47

Switzerland: +41 43 210 51 63

Conference ID: 4406250

Additionally, a live webcast of the conference call will be available on the Company's investor relations website and under the following link. Following the conclusion of the call, a replay of the conference call will be available on the Company's website.

About On

On was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement – a mission that still guides the brand today. Fifteen years after market launch, On delivers industry-disrupting innovation in premium footwear, apparel and accessories for high-performance running, outdoor, training, all-day activities and tennis. On’s award-winning CloudTec® and LightSpray™ innovation, purposeful design and groundbreaking strides within the circular economy have attracted a fast-growing global fan base – inspiring humans to explore, discover and Dream On.

On is present in more than 80 countries globally and engages with a digital community on www.on.com.

Non-IFRS Measures

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis are financial measures that are not defined under IFRS. We use these non-IFRS measures when evaluating our performance, including when making financial and operating decisions, and as a key component in the determination of variable incentive compensation for employees. We believe that, in addition to conventional measures prepared in accordance with IFRS, these non-IFRS measures enhance investor understanding of our financial and operating performance from period to period, because they exclude share-based compensation which is not viewed by management as part of our ongoing operations and performance, enhance the comparability of results between each period, help identify trends in operating results and provide additional insight and transparency on how management evaluates the business. In particular, we believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income and net working capital are measures commonly used by investors to evaluate companies in the sportswear industry.

However, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic EPS, adjusted diluted EPS, net working capital, and net sales on a constant currency basis should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS and may not be comparable to similarly titled non-IFRS measures used by other companies. The tables below reconcile each non-IFRS measure to its most directly comparable IFRS measure.

As noted above, we do not provide a reconciliation of forward-looking adjusted EBITDA to IFRS net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. The amount of these deductions may be material and, therefore, could result in projected net income being materially less than projected adjusted EBITDA. These statements represent forward-looking information and may represent a financial outlook, and actual results may vary. Please see the risks and assumptions referred to in the Forward-Looking Statements section of this press release.

Net sales on a constant currency basis is a non-IFRS financial measure and should be viewed as a supplement to our results under IFRS. Net sales on a constant currency basis represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales within our results, to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations.

Forward-Looking Statements

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Many of the forward-looking statements contained in this management’s discussion and analysis can be identified by the use of forward-looking words such as “anticipate,” “believe,” “continue,” “could,” “expect,” “estimate,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “target,” “will,” “would,” and “should,” among others.

Among other things, On’s quotations from management in the press releases and other written materials, as well as On’s strategic and operational plans, contain forward-looking statements. On may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements appear in a number of places in this management’s discussion and analysis and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management.

Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified under the section titled “Risk Factors” in our Annual Report. These risks and uncertainties include factors relating to: the strength of our brand and our ability to maintain our reputation and brand image; our ability and the ability of our independent manufacturers and other suppliers to follow responsible business practices; our ability to implement our growth strategy; the concentration of our business in a single, discretionary product category, namely footwear, apparel and accessories; our ability to continue to innovate and meet consumer expectations; changes in consumer tastes and preferences including in products and sustainability, and our ability to connect with our consumer base; our ability to open new stores at locations that will attract customers to our premium products; our ability to compete and conduct our business in the future; health epidemics, pandemics and similar outbreaks; general economic, political, demographic and business conditions worldwide, including geopolitical uncertainty and instability, such as the on-going Russia-Ukraine or Israel-Hamas conflicts and on-going shipping disruptions in the Red Sea and surrounding waterways; the success of operating initiatives, including advertising and promotional efforts and new product and concept development by us and our competitors; our ability to successfully develop, implement, and scale our LightSpray™ technology and products developed using this technology; our ability to strengthen and grow our DTC channel; our ability to address climate related risks; our ability to execute and manage our sustainability strategy and achieve our sustainability-related goals and targets, including sustainable product offerings and investor and customer scrutiny; our third-party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; supply chain disruptions, inflation and increased costs in supplies, goods and transportation, customs and duty expenses, and foreign exchange rates; the availability of qualified personnel and the ability to retain such personnel, including our Executive Officers; our ability to accurately forecast demand for our products and manage product manufacturing decisions; our ability to distribute products through our wholesale channel; changes in commodity, material, labor, distribution and other operating costs; our international operations; our ability to protect our intellectual property and defend against allegations of violations of third-party intellectual property by us; cybersecurity incidents and other disruptions to our information technology ("IT") systems; increased hacking activity against the critical infrastructure of any nation or organization that retaliates against Russia for its invasion of Ukraine; our reliance on complex IT systems; our ability to adopt generative artificial intelligence ("AI") technologies in our operations; changes and contemplation of changes to trade policies, tariffs and import/export regulations in the United States and other jurisdictions; financial accounting and tax matters; our ability to maintain effective internal control over financial reporting; the potential impact of, and our compliance with, new and existing laws and regulations; other factors that may affect our financial condition, liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available at www.sec.gov, including, without limitation, our most recent reports on Form 20-F and Form 6-K. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.

Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.

Source: On

Category: Earnings

Consolidated Financial Information

Consolidated interim statements of income

(unaudited)

Three-month period ended

September 30,

Nine-month period ended

September 30,

(CHF in millions)

2025

2024

2025

2024

Net sales

794.4

635.8

2,270.2

1,711.7

Cost of sales

(272.1

)

(250.5

)

(851.9

)

(682.8

)

Gross profit

522.2

385.3

1,418.3

1,028.9

Selling, general and administrative expenses

(397.5

)

(312.7

)

(1,123.8

)

(870.4

)

Operating result

124.7

72.6

294.5

158.5

Financial income

8.1

6.0

22.9

17.1

Financial expenses

(8.1

)

(6.5

)

(21.8

)

(17.2

)

Foreign exchange gain / (loss)

(6.1

)

(42.6

)

(160.5

)

29.7

Income before taxes

118.6

29.6

135.2

188.1

Income tax benefit / (expense)

0.3

0.9

(0.6

)

(35.4

)

Net income

118.9

30.5

134.6

152.7

Earnings per share

Basic EPS Class A (CHF)

0.36

0.09

0.41

0.47

Basic EPS Class B (CHF)

0.04

0.01

0.04

0.05

Diluted EPS Class A (CHF)

0.36

0.09

0.40

0.47

Diluted EPS Class B (CHF)

0.03

0.01

0.04

0.05

Consolidated interim balance sheets

(unaudited)

(CHF in millions)

9/30/2025

12/31/2024

Cash and cash equivalents

961.8

924.3

Trade receivables

340.9

246.1

Inventories

380.6

419.2

Other current financial assets

63.1

56.4

Other current operating assets

165.3

113.7

Current assets

1,911.7

1,759.7

Property, plant and equipment

135.2

127.2

Right-of-use assets

479.9

323.6

Intangible assets

54.6

58.3

Deferred tax assets

170.3

107.8

Non-current assets

839.9

617.0

Assets

2,751.6

2,376.7

Trade payables

155.6

166.5

Current lease liabilities

76.1

59.1

Other current financial liabilities

55.5

51.3

Other current operating liabilities

380.3

299.3

Current provisions

15.8

21.7

Income tax liabilities

65.2

62.5

Current liabilities

748.6

660.4

Employee benefit obligations

7.9

8.6

Non-current provisions

18.8

14.9

Non-current lease liabilities

427.8

288.5

Other non-current financial liabilities

0.7

1.7

Deferred tax liabilities

6.5

10.8

Non-current liabilities

461.8

324.5

Share capital

34.0

33.7

Treasury shares

(26.7

)

(26.8

)

Capital reserves

1,267.9

1,210.0

Other reserves

(47.6

)

(4.0

)

Retained earnings

313.6

178.9

Equity

1,541.3

1,391.8

Equity and liabilities

2,751.6

2,376.7

Consolidated interim statements of cash flows

(unaudited)

Nine-month period ended

September 30,

(CHF in millions)

2025

2024

Net income

134.6

152.7

Adjustments for:

Share-based compensation

49.7

42.4

Employee benefit expenses

2.8

1.3

Depreciation and amortization

92.9

75.9

Loss on disposal of assets

0.7

0.2

Interest income and expenses

(6.7

)

(5.2

)

Net exchange differences

162.0

(27.7

)

Income taxes

0.6

35.4

Change in working capital

(178.3

)

(35.0

)

Trade receivables

(130.5

)

(118.5

)

Inventories

(39.1

)

15.6

Trade payables

(8.7

)

67.9

Change in other current assets / liabilities

36.9

110.7

Change in provisions

(5.1

)

11.5

Interests received

22.4

16.5

Income taxes paid

(66.0

)

(37.0

)

Cash inflow from operating activities

246.4

341.8

Purchase of tangible assets

(46.2

)

(41.5

)

Purchase of intangible assets

(3.8

)

(3.7

)

Cash (outflow) from investing activities

(50.0

)

(45.2

)

Payments of lease liabilities

(51.3

)

(37.4

)

Proceeds from issuance of shares

0.3

0.2

Proceeds on sale of treasury shares related to share-based compensation

8.3

8.6

Interests paid

(15.6

)

(11.3

)

Cash (outflow) from financing activities

(58.3

)

(39.8

)

Change in net cash and cash equivalents

138.1

256.8

Net cash and cash equivalents at January 1

924.3

494.6

Net impact of foreign exchange rate differences

(100.5

)

(2.4

)

Net cash and cash equivalents at September 30

961.8

749.0

Reconciliation of Non-IFRS measures

Adjusted EBITDA and Adjusted EBITDA Margin

The table below reconciles net income to adjusted EBITDA for the periods presented. Adjusted EBITDA margin is equal to adjusted EBITDA for the period presented as a percentage of net sales for the same period.

Three-month period ended September

Nine-month period ended September

(CHF in millions)

2025

2024

% Change

2025

2024

% Change

Net income

118.9

30.5

289.8

134.6

152.7

(11.9

Exclude the impact of:

Income taxes

(0.3

)

(0.9

)

(66.7

0.6

35.4

(98.3

Financial income

(8.1

)

(6.0

)

35.0

(22.9

)

(17.1

)

33.9

Financial expenses

8.1

6.5

24.6

21.8

17.2

26.7

Foreign exchange result

6.1

42.6

(85.7

160.5

(29.7

)

640.4

Depreciation and amortization

32.2

27.5

17.1

92.9

75.9

22.4

Share-based compensation (1)

23.0

19.9

15.6

48.6

53.9

(9.8

Adjusted EBITDA

179.9

120.1

49.8

436.0

288.3

51.2

Adjusted EBITDA Margin

22.6

18.9

20.0

19.2

16.8

14.0

(1) Management excludes share-based compensation expenses as we do not consider these expenses reflective of our ongoing operations and performance.

Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted EPS

We use adjusted net income, adjusted basic EPS and adjusted diluted EPS as measures of operating performance in conjunction with related IFRS measures.

For the purpose of operational performance measurement, we calculate adjusted net income, adjusted basic EPS and adjusted diluted EPS in a manner that fully excludes the impact of any costs related to share-based compensation and includes the tax effect on the tax-deductible portion of the non-IFRS adjustments, which we believe increases comparability of the metric from period to period, and makes it useful for management, our audit committee and investors to assess our financial performance over time.

Adjusted basic EPS is calculated by dividing adjusted net income by the weighted average number of ordinary shares outstanding during the period. Adjusted diluted EPS is calculated by dividing adjusted net income by the weighted average number of ordinary shares outstanding during the period on a fully diluted basis.

The table below provides a reconciliation between net income and adjusted net income, adjusted basic EPS and adjusted diluted EPS for the periods presented:

Three-month period ended September 30,

(CHF in millions, except per share data)

2025

2024

Class A

Class B

Class A

Class B

Net income

106.8

12.1

27.2

3.3

Exclude the impact of:

Share-based compensation (1)

20.7

2.3

17.8

2.1

Tax effect of adjustments (2)

0.1

—

(0.2

)

—

Adjusted net income

127.6

14.4

44.8

5.4

Weighted number of outstanding shares

296,472,498

334,916,680

288,654,081

345,437,500

Weighted number of shares with dilutive effects

2,926,575

10,595,360

3,724,345

12,963,353

Weighted number of outstanding shares (diluted and undiluted) (3)

299,399,073

345,512,040

292,378,426

358,400,853

Adjusted basic EPS (CHF)

0.43

0.04

0.16

0.02

Adjusted diluted EPS (CHF)

0.43

0.04

0.15

0.01

Nine-month period ended September 30,

(CHF in millions, except per share data)

2025

2024

Class A

Class B

Class A

Class B

Net income

120.7

13.9

136.4

16.3

Exclude the impact of:

Share-based compensation (1)

43.5

5.0

48.1

5.8

Tax effect of adjustments (2)

(0.3

)

—

(2.7

)

(0.3

)

Adjusted net income

164.0

18.9

181.8

21.8

Weighted number of outstanding shares

295,155,386

340,427,586

288,232,639

345,437,500

Weighted number of shares with dilutive effects

3,648,162

12,108,722

3,515,460

12,487,714

Weighted number of outstanding shares (diluted and undiluted) (3)

298,803,548

352,536,308

291,748,099

357,925,214

Adjusted basic EPS (CHF)

0.56

0.06

0.63

0.06

Adjusted diluted EPS (CHF)

0.55

0.05

0.62

0.06

(1) Management excludes share-based compensation expenses as we do not consider these expenses reflective of our ongoing operations and performance.

(2) The tax effect has been calculated by applying the local tax rate on the tax-deductible portion of the respective adjustments.

(3) Weighted number of outstanding shares (diluted and undiluted) are presented herein in order to calculate Adjusted EPS as Adjusted net income for such periods.

Net Sales on a Constant Currency Basis

Net sales on a constant currency basis is a non-IFRS measure which represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We provide constant currency percent change in net sales in our results to enhance the visibility of the underlying growth rate of net sales, excluding the impact of foreign currency exchange rate fluctuations. Below, we show reported net sales split out by sales channel, geography, and product, and include the reported percent change and the constant currency percent change.

Net sales by sales channel

The following tables present net sales by sales channel:

Three-month period ended September 30,

(CHF in millions)

2025

2024

% Change

Constant Currency % Change (1)

Wholesale

479.6

389.1

23.3

32.5

Direct-to-consumer

314.7

246.7

27.6

37.5

Net sales

794.4

635.8

24.9

34.5

Nine-month period ended September 30,

(CHF in millions)

2025

2024

% Change

Constant Currency % Change (1)

Wholesale

1,370.3

1,065.1

28.7

33.1

Direct-to-consumer

899.9

646.6

39.2

44.4

Net sales

2,270.2

1,711.7

32.6

37.3

Net sales by geography

The following tables present net sales by geographic region (based on the location of the counterparty):

Three-month period ended September 30,

(CHF in millions)

2025

2024

% Change

Constant Currency % Change (1)

Americas

436.2

395.5

10.3

21.0

Europe, Middle East and Africa

213.3

165.8

28.6

33.0

Asia-Pacific

144.9

74.6

94.2

109.2

Net sales

794.4

635.8

24.9

34.5

(1) The constant currency percent change represents changes to net sales on a constant currency basis, which is a non-IFRS financial measure. See section titled "Non-IFRS Measures" for a description of this measure. Reconciliation to the nearest IFRS measure is shown in the tables above.

Nine-month period ended September 30,

(CHF in millions)

2025

2024

% Change

Constant Currency % Change (1)

Americas

1,305.9

1,095.1

19.2

24.1

Europe, Middle East and Africa

579.7

430.4

34.7

37.2

Asia-Pacific

384.6

186.2

106.6

115.3

Net Sales

2,270.2

1,711.7

32.6

37.3

Net sales by product

The following tables present net sales by product group:

Three-month period ended September 30,

(CHF in millions)

2025

2024

% Change

Constant Currency % Change (1)

Shoes

731.3

603.7

21.1

30.4

Apparel

50.1

26.8

86.9

100.2

Accessories

13.0

5.3

145.3

160.8

Net sales

794.4

635.8

24.9

34.5

Nine-month period ended September 30,

(CHF in millions)

2025

2024

% Change

Constant Currency % Change (1)

Shoes

2,117.1

1,630.8

29.8

34.4

Apparel

124.9

68.4

82.6

89.5

Accessories

28.2

12.4

127.4

136.7

Net sales

2,270.2

1,711.7

32.6

37.3

Net Working Capital

Net working capital is a financial measure that is not defined under IFRS. We use and believe that certain investors and analysts use this information to assess liquidity and management use of net working capital resources. We define net working capital as trade receivables, plus inventories, minus trade payables. This measure should not be considered in isolation or as a substitute for any standardized measure under IFRS.

Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.

As of September 30,

As of December 31,

(CHF in millions)

2025

2024

% Change

Trade receivables

340.9

246.1

38.5

Inventories

380.6

419.2

(9.2

Trade payables

(155.6

)

(166.5

)

(6.5

Net working capital

565.8

498.9

13.4